S&A Produce defied a tough market to report an increase in profits for 2009.

In the year to 31 December 2009 pre-tax profits were £629,560, up from £264,515 in 2008. It also posted an increase in sales to £55.3 million in 2009, from £49.6m the previous year.

The directors’ report states that the company is exposed to interest rate risk, currency risk on euro transactions and liquid resources in other group companies.

But a spokesperson added: “In 2009 the company reduced its bank borrowings from almost £5m to less than £500,000. Like most other businesses we need to borrow from our bankers to provide the funds necessary to support continued growth. We have a clear business strategy and our bankers are very supportive of us in delivering that strategy.”

The report also said that reliance on a small customer base of large, multiple retail customers was a potential risk but was mitigated by the fact that “the company has both a significant market share and high service levels which those customers would find difficult to replace from other sources”.

The company reported growing conditions were much improved in 2009, its import business grew and it underpinned the long-term future of key sites by securing the required planning consents.

The spokesperson added: “Profit margins remain under pressure but the 12 per cent growth in sales and tight control over costs have enabled us to record a worthwhile profit improvement.

“2010 has continued the progress made in 2009.”

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